Diageo toasts 15.8% sales rise as spirits in favour

Brewer and distiller Diageo on Thursday reported a rise in first-half sales and profits as people quaffed more spirits at home during the Covid pandemic, but warned of persistent headwinds from the virus and supply-chain constraints.

The company said net sales rose of 15.8% to £8bn, underpinned by favourable industry trends of spirits taking a large share of the market, with a “particularly strong” performance in scotch, tequila and beer.

Operating profit at the Tanqueray gin maker rose 22.5% to £2.7bn and the interim dividend was lifted by 5% to 29.36p a share.

“We expect organic net sales momentum to continue through the second half of fiscal 2022, albeit we are lapping a tougher comparator,” the company said on Thursday.

“We believe we are well positioned to benefit from resilience in the off-trade and continued recovery in the on-trade. However, we expect near-term volatility to remain, including potential impacts from Covid-19 and global supply chain constraints, and for disruption in travel retail to continue.”